Revenue and cost (dollars per unit) MC AVC 50 40 30 20 10 10 30 40 50 Output (units per day) The above figure illustrates a perfectly competitive firm. If the market price is $10 a unit, to maximize its profit (or minimize its loss) the firm should O A) produce 30 units. B) shut down. C) produce 40 units. D) produce between 10 and less than 30 units. E) produce more than 30 units and less than 40 units. 20

Revenue and cost (dollars per unit) MC AVC 50 40 30 20 10 10 30 40 50 Output (units per day) The above figure illustrates a perfectly competitive firm. If the market price is $10 a unit, to maximize its profit (or minimize its loss) the firm should O A) produce 30 units. B) shut down. C) produce 40 units. D) produce between 10 and less than 30 units. E) produce more than 30 units and less than 40 units. 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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